3rd Aug 2010 15:00
SISTEMA EGM APPROVES A GUARANTEETO SVYAZINVEST
Moscow, Russia - August 3, 2010 - Sistema (the "Group") (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies operating in different industries, today announced that the Extraordinary General Meeting of its shareholders ("EGM"), held on August 2, 2010, has approved a related party transaction to guarantee the obligations of CJSC Sistema-Inventure to OJSC Svyazinvest in relation to the agreement signed between the two parties to exchange shares in OJSC MGTS for shares in CJSC SkyLink. The EGM quorum reached 81.42% of the total number of eligible voters.
According to the share swap agreement, Svyazinvest agreed to transfer to Sistema-Inventure 28% of ordinary shares in MGTS (23.3% of the share capital of MGTS) in exchange for Sistema-Inventure's 50% stake in SkyLink, which combined with the indirect ownership of the remaining 50% by SkyLink, effectively totals 100% of the SkyLink's share capital. Furthermore, Sistema-Inventure will make an additional cash payment of RUB 450 million to cover the difference in value of MGTS and SkyLink shares. The rights and obligations of the parties under the share swap agreement will become enforceable following the execution of a number of pending conditions.
The terms of the share swap agreement comply with the provisions of the Memorandum of Understanding signed between Comstar-UTS, Sistema and Svyazinvest on November 23, 2009.
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For further information, please visit www.sistema.com or contact:
| Sistema Investor Relations | Shared Value Limited | |
| Pavel Kim | Larisa Kogut-Millings | |
| Tel: +7 495 692 22 88 | Tel: +44 (0) 20 7321 5010 | |
Sistema is the largest public diversified financial corporation in Russia and the CIS, which manages companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the company reported revenues of US$ 6.2 billion for the first quarter of 2010, and total assets of US$ 42.6 billion as at March 31, 2010. Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol "AFKS" on the RTS Stock Exchange, under the symbol "AFKC" on the MICEX Stock Exchange, and under the symbol "SIST" on the Moscow Stock Exchange (MSE).
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.
Copyright Business Wire 2010
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